Cabinet approves PPP-led modernisation of Nagpur Airport to handle 30 Mn passengers annually
Image Credits - Aviation Jeta
This transformation is set to enhance connectivity within the Vidarbha region, and also strengthen its economic infrastructure.
The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the extension of lease period of the Airports Authority of India (AAI)’s land leased to MIL (MIHAN India Limited) beyond August 06, 2039, so as to enable MIL to license Nagpur Airport to the Concessionaire, viz. GMR Nagpur International Airport Limited (GNIAL) for 30 years since commercial operation date.
This said to mark a major milestone in Nagpur airport’s journey to becoming a regional aviation hub under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
In 2009, a Joint Venture Company (JVC)- MIL was formed by AAI and Maharashtra Airport Development Company Ltd. (MADC) with equity structure of 49:51 respectively. Though Airport assets of AAI were transferred to MIL in 2009 for airport operation, the lease deed got delayed due to land demarcation issues.
In 2016, MIL floated a global tender for identifying a Partner to operate the airport under the Public-Private Partnership (PPP) model. GMR Airports Ltd. (GAL) emerged as the highest bidder, with quoted revenue share of 5.76%. This was later revised to 14.49% of Gross Revenue.
With extension of Lease Period of the AAI land leased to MIL beyond August 06, 2039, it would now become co-terminus with the 30 years concession period of GNIAL, paving the way for handing over of airport to 2nd JVC-GNIAL. This is expected to usher in a new era of growth and infrastructure advancement for Nagpur Airport. With private sector efficiency and government oversight, the airport is expected to see significant investment, modernisation, and improved passenger and cargo services.
GNIAL will take up the transformation of Nagpur's Dr. Babasaheb Ambedkar International Airport into a world-class facility with phased development envisaged to reach the ultimate capacity of handling 30 million passengers annually, positioning it as a key Airport in Central India. This transformation is set to not only enhance connectivity within the Vidarbha region, but also strengthen its economic infrastructure.
